Bitcoin Backs Down: Ethereum Market Dominance Soars
Amidst the lull in the realm of Bitcoin, Ethereum emerges as a trailblazer, confidently charting its course. While the crypto king takes a breather following its ETF approval, Ethereum, undeterred, is experiencing a surge in both price and dominance, propelled by an influx of new users and the prevailing trend of self-custody.
Recent data from Santiment vividly illustrates Ethereum’s ascendancy. The platform’s price dominance, reflecting its market share in comparison to all other cryptocurrencies, has witnessed a remarkable surge of 22.4% within a mere week.
Ethereum’s Remarkable Surge: Growing Community, Strong On-Chain
This surge is not merely a passive spectacle; Ethereum is actively attracting an astonishing 89,400 new addresses on a daily basis, with an unprecedented 96,300 joining the Ethereum community in a single day.
Source: Santiment
This momentum is not solely about acquiring new participants; it’s about retention. Ethereum’s exchange supply, representing the quantity readily available for sale, is approaching its historical low of 8.05%. This shift signals a notable move towards self-custody and staking, mitigating the immediate risk of a substantial selloff and fortifying Ethereum’s price floor.
The on-chain strength witnessed translates into tangible market action. Following a brief dip that tested the $2,500 support, Ethereum not only stabilized but turned this once-resilient level into a launchpad.
Ethereum currently trading at $2,556 on the daily chart: TradingView.com
Analysts are now setting their sights on the $2,700 barrier as the gateway to unlocking a potential price surge, with FOMO (fear of missing out) traders anticipated to join the rally. Beyond this juncture, the horizon appears boundless, with $3,400 emerging as an enticing target.
Caution Amid Excitement: Ethereum’s Unpredictable Trajectory
Yet, amid the excitement, an air of caution permeates the volatile crypto landscape. A breach below the “hammer” formation that materialized on Monday holds the potential to send Ethereum plummeting towards the 20-Day EMA (exponential moving average) at approximately $2,300.
Traders are poised on tenterhooks, meticulously monitoring these crucial levels to decipher the forthcoming trajectory of Ethereum’s journey.
One undeniable truth emerges: Ethereum is casting off the shadow of Bitcoin and carving out its unique path. With an increasing dominance, a fervent user base, and a focus on self-custody, Ethereum is laying the groundwork for future expansion.
Whether it attains the envisioned $3,400 pinnacle or steers towards an alternate destiny, one certainty prevails—Ethereum is an influential force, and its narrative is only in its nascent stages.
History repeating itself.#Bitcoin dominance peaking before the halving and potentially marking a cycle top.
Altcoins are likely to outperform coming period. pic.twitter.com/ox36x2M5NG
— Michaël van de Poppe (@CryptoMichNL) January 15, 2024
Meanwhile, in order to bolster Ethereum’s increasing dominance over Bitcoin, Michaël van de Poppe, the founder and CEO of trading company MNTrading, observed that Bitcoin was falling behind Ethereum in terms of the total market capitalization of cryptocurrencies.
In a post on X dated January 12, he included the following graphic with the caption, “#Bitcoin dominance peaking before the halving and maybe signifying a cycle top.” It’s conceivable that altcoins will perform better in the near future.
Featured image from Shutterstock
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